Episode 76: Will We See a Housing Market Crash in 2022?
Have your question answered on the Money Wisdom Question Series!
Today’s question is in regards to the housing market. More specifically, the question is: “will we see a housing market crash in 2022 as we saw in 2008?”
Interest Rates
Many of you have likely seen the value of your homes go up over the last couple of years. A couple of things have led to that. One is really low-interest rates. Really low mortgage rates allow people to buy a home and finance that very cheaply.
Supply and Demand
The other aspect that’s led to the increase in housing value is the very low supply of housing. If you have a low supply, but the demand is high, that will cause the price to go up.
Today’s Housing Market
Lately, we’ve seen mortgage rates start to tick up a little bit and it’s becoming a little bit more expensive to purchase a home. This is stalling sales to a certain degree, but because supply is still low and constraint, housing prices have pretty much stabilized. You may not be seeing as many of the bidding wars, or houses selling within hours of going on the market, but they’re certainly not crashing or plummeting. So, will we see a crash in 2022? I’d say it’s unlikely. Obviously, we don’t know what the future holds, but it is probably unlikely that housing prices will plummet precipitously once again.
Thanks for joining me and I hope you found this information helpful!
P.S. If you enjoyed this topic and want to learn more, download your copy of our guide, “Riding Market Highs“.
P.P.S. Feel free to submit questions here for a chance to have them answered!
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